BUSA2106 Lecture 7 Outline of Last Lecture I Pretrial process II Trial III Appeal Outline of Current Lecture IV Alternative Dispute Resolution Current Lecture Litigation is 1 2 3 4 Expensive Slow Stressful Public How might a dispute be resolved out of court Alternative dispute resolution ADR Why ADR Cost Flexibility Speed Privacy Why not ADR Privacy Limited opportunity to appeal Alternative Dispute Resolution ADR Goal settle a dispute without litigation or without proceeding all the way through the litigation process Types a Negotiation b Mediation c Arbitration Negotiation What are some differences between the three forms of ADR Parties attempt to settle disputes themselves with or without attorneys Simple Informal Low cost More than 90 of corporate lawsuits are resolved before trial Mediation Neutral third party the mediator actively works with both sides Mediator may propose a solution but does not make a decision resolving the matter Some states require mediation before litigation More formal Higher cost Arbitration Third party makes the decision Like a trial Can be binding or nonbinding Decision is final only limited appeal rights More formal More expensive Arbitration clauses Terms written into contracts requiring that disputes go to arbitration rather than to court Generally enforceable as long as the signing party actually consented to it
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